High court reverses African Global Operation liquidation
In February, directors placed the companies in voluntary liquidation, but African Global Holdings’ advocate says the special resolution was not properly passed
On Thursday, the high court in Johannesburg reversed the liquidation of the African Global Operations group of companies.
The court set aside the decision taken by six directors of African Global Operations, formerly known as Bosasa, on February 12 to place the group of companies into voluntary liquidation.
In its urgent application, which was heard on Wednesday, African Global Holdings sought a court order declaring that the special resolution taken by the directors was void from the beginning and of no force or effect. African Global Holdings advocate Mike Hellens SC argued that the special resolution was not properly passed.
The company had also sought an order that Cloete Murray and Ralph Lutchman had no rights as provisional liquidators, nor as liquidators in respect of the companies.
“The consequence will be that the liquidators should never have been appointed,” Hellens said on Wednesday.
The directors of the various companies need a solution following the closure of their bank accounts following allegations of state capture leveled against the companies. The closure of the accounts means they will not be able to pay their employees and suppliers, or receive payment for services rendered.
African Global Operations was not immediately available for comment after the judgment on Thursday.
Murray, one of the liquidators, told eNCA on Thursday afternoon that his legal team had still to read the judgment. He said he still did not understand why African Global Operations sought the court order.
“That is strange. They resolved to take the companies into liquidation. They then applied, on an urgent basis, to have the very same resolutions set aside. I have no idea why,” Murray said.
He said the court order meant that the companies are placed in the same position they were in February when the resolution to place the group under liquidation was taken. However, he said, the bank accounts of the companies remained closed. “I am not aware of new bankers being on board.”